GBP/USD Weekly Price Forecast – British Pound Tests Major Support Level

The British pound has fallen significantly during the course of the week only to turn around and form a bit of a hammer. That being the case, the market looks as if it is going to continue to look at the 1.36 handle, which is an area of significant support. On the other hand, if we were to turn around a break above the candlestick, then it is likely that we go looking towards the 1.39 handle. Quite frankly, the British pound looks rather well supported.

GBP/USD Video 27.09.21

On the other hand, if we were to break down below the 1.36 handle, then the market could fall quite drastically. At that point, I think we could unwind for a bigger move, but clearly it looks as if it is going to be difficult to break down through there. If we do, the market is likely to go much lower. At that point, the market is likely to go opening up for a move to the 1.30 handle. All things been equal, this is a market that sees a lot of noisy behavior, but when you look at this chart, it is obvious that we are trying to figure out what to do for a bigger move.

You could even make an argument for a little bit of a symmetrical triangle being formed but is still early for that. The one thing I think you can count on is a lot of choppy behavior and hesitation. At this point, market is going to continue to be a lot of noise more than anything else.

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This article was originally posted on FX Empire

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